Financial Considerations in Shale Gas Supply Chain Development

In this work, an optimization framework to support the planning of the development of shale gas resources is proposed. Financial aspects are taken into account through the integration of financing options, such as own capital, and external sources, short and long term bank credit lines. The model also includes the design of well-pads in terms of total number of wells, and length and number of hydraulic fractures completed at each well. In addition, different capacities and locations are considered for compressor stations, gas separation plants, and water treatment plants. A case study involving two alternative financing strategies was conducted to demonstrate the capabilities of the model. It is found that external financing can play an important role in the development of a shale gas field, achieving an increase in net profit of almost 65 % when compared to a scenario where only own capital is considered.